The South Korean government may soon allow domestic issuance of tokens and open up institutional investment in cryptocurrency. Simon Kim, CEO of Hashed, revealed that the cryptocurrency taxation has been extended for another two years, accelerating the institutionalization process in the cryptocurrency and Web3 sectors.
The expected policies include allowing companies to open cryptocurrency accounts, opening participation for institutional investors in cryptocurrency investments, issuing tokens in South Korea, and publishing security tokens, among others. The 20% capital gains tax plan originally scheduled to take effect on January 1, 2022, has been postponed to 2027. The Democratic Party has announced a further two-year extension, while the opposition party, the People's Power, advocates for a three-year delay. The Democratic Party has changed its stance and agrees to the postponement of the digital asset capital gains tax.
The Democratic Party, which previously opposed this move, criticized the People's Power for political maneuvering, emphasizing that it will tax cryptocurrency earnings in 2025. Overall, South Korea's cryptocurrency policy is gradually moving towards openness and institutionalization, sparking widespread discussion and attention in the market.